Justin

(Dec 20): Britain ran a smaller-than-expected budget deficit last month as a past lull in inflation pushed down interest paid on

Crude oil prices were on track for yet another weekly loss earlier today as pessimism about demand growth in China continued to dominate markets. At the time of writing

EUR/GBP holds positive ground to around 0.8300 in Friday’s early European session. UK Retail Sales increased 0.2% on a monthly basis in November vs. 0.5% expected. Expectations of a more aggressive rate-cut path by ECB might undermine the Euro and cap the upside for the cross.

USD/CHF trades with mild gains near 0.8980 in Friday’s early European session. The Fed’s hawkish approach and encouraging US economic data support the USD. The safe-haven flows might boost the CHF and cap the upside for the pair.

The People’s Bank of China (PBOC), China's central bank, announced to leave its Loan Prime Rates (LPRs) unchanged on Friday. The one-year and five-year LPRs were at 3.10% and 3.60%, respectively.

USD/CAD retreats after touching a fresh multi-year peak earlier this Thursday. The overbought RSI prompts some profit-taking amid subdued USD price action. The recent breakout through an ascending trend channel favors bullish traders.

Multiple central banks convene today.

GBP/JPY rose after the BoJ decided to keep the short-term rate target unchanged within the range of 0.15%-0.25%. BoJ Summary suggests that uncertainty surrounding Japan's economic and price outlook remains significant. The Pound Sterling appreciates as traders expect the BoE to maintain its current interest rates at 4.75% on Thursday.

Stock market today.